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Data included in dataset.
Column Column title Variable
A FIPS FIPS code identifying each state
B Year Variable denoting the year and ranges from1994 to 2008
C Fatalities Fatalities from automobile accidents
D DPVM Fatalities per 100 million vehicle miles driven
E SGasTax State tax on gasoline, $/gallon
F RSGasTax Real state tax on gasoline, 2009$/gallon
G CigTax State tax on cigarettes, dollars per 20-pack
H SpTax State tax on spirits, dollars per gallon
I WineTax State tax on wine, dollars per gallon
J BeerTax State tax on beer, dollars per gallon
K RuralInterstateVMD Vehicle-miles driven in a year on rural interstates, 100 million
L RuralTotalVMD Vehicle-miles driven in a year on all rural roadways, 100 million
M UrbanInterstateVMD Vehicle-miles driven in a year on urban interstates, 100 million
N UrbanTotalVMD Vehicle-miles driven in a year on all urban roadways, 100 million
O PU20 Percent of licensed under the age of 20
P PU25 Percent of licensed under the age of 25
Q PO70 Percent of licensed over the age of 70
R PO75 Percent of licensed over the age of 75
S PO80 Percent of licensed over the age of 80
T PO85 Percent of licensed over the age of 85
U BACPS Dummy variable equal to 1 if the state has adopted the 0.08 BAC per se law; 0 otherwise
V RMFI09 Median family income in a state in 2009 dollars

    Exercises

  1. At this point in your thesis you would want to point out that each of the variables in the data set are proxies for the variables discussed in part 2 of your paper. As an exercise explain how each of the explanatory variables in Table 2 are proxies for the explanatory variables mentioned in the theory section.
  2. It would seem that the "cleanest" variable in the whole data set is "fatalities." Lookup the official definition of how a fatality from an automobile accident is measured. Does this variable still seem to have a clear and unequivocal meaning?

Empirical estimation

Now we are almost ready to present the estimation results from the model. There are a few things we need to cover before we move to presenting the estimation results. First, what, if any, are the econometric issues raised by the model and the data set? In this case we are using a panel data set to estimate the regression:

f p v m d i t = β 0 + j = 1 k 1 β j x j i t + β k D i t B A C + ε i t , MathType@MTEF@5@5@+=feaagyart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVCI8FfYJH8YrFfeuY=Hhbbf9v8qqaqFr0xc9pk0xbba9q8WqFfeaY=biLkVcLq=JHqpepeea0=as0Fb9pgeaYRXxe9vr0=vr0=vqpWqaaeaabiGaciaacaqabeaadaqaaqaaaOqaaiaadAgacaWGWbGaamODaiaad2gacaWGKbWaaSbaaSqaaiaadMgacaWG0baabeaakiabg2da9iabek7aInaaBaaaleaacaaIWaaabeaakiabgUcaRmaaqahabaGaeqOSdi2aaSbaaSqaaiaadQgaaeqaaOGaamiEamaaBaaaleaacaWGQbGaamyAaiaadshaaeqaaaqaaiaadQgacqGH9aqpcaaIXaaabaGaam4AaiabgkHiTiaaigdaa0GaeyyeIuoakiabgUcaRiabek7aInaaBaaaleaacaWGRbaabeaakiaadseadaqhaaWcbaGaamyAaiaadshaaeaacaWGcbGaamyqaiaadoeaaaGccqGHRaWkcqaH1oqzdaWgaaWcbaGaamyAaiaadshaaeqaaOGaaiilaaaa@5DBD@

where fpvmd it is the number of fatalities per 100 million vehicle miles driven in state i in year t, the x jit is the j th explanatory variable in state i in year t, and D i t B A C MathType@MTEF@5@5@+=feaagyart1ev2aqatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVCI8FfYJH8YrFfeuY=Hhbbf9v8qqaqFr0xc9pk0xbba9q8WqFfeaY=biLkVcLq=JHqpepeea0=as0Fb9pgeaYRXxe9vr0=vr0=vqpWqaaeaabiGaciaacaqabeaadaqaaqaaaOqaaiaadseadaqhaaWcbaGaamyAaiaadshaaeaacaWGcbGaamyqaiaadoeaaaaaaa@3B1B@ is the dummy variable equal to 1 if state i has a 0.08 per se BAC law in year t . From a policy point of view what we are interested in is the sign of β k MathType@MTEF@5@5@+=feaagyart1ev2aqatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVCI8FfYJH8YrFfeuY=Hhbbf9v8qqaqFr0xc9pk0xbba9q8WqFfeaY=biLkVcLq=JHqpepeea0=as0Fb9pgeaYRXxe9vr0=vr0=vqpWqaaeaabiGaciaacaqabeaadaqaaqaaaOqaaiabek7aInaaBaaaleaacaWGRbaabeaaaaa@38A6@ and if β k MathType@MTEF@5@5@+=feaagyart1ev2aqatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVCI8FfYJH8YrFfeuY=Hhbbf9v8qqaqFr0xc9pk0xbba9q8WqFfeaY=biLkVcLq=JHqpepeea0=as0Fb9pgeaYRXxe9vr0=vr0=vqpWqaaeaabiGaciaacaqabeaadaqaaqaaaOqaaiabek7aInaaBaaaleaacaWGRbaabeaaaaa@38A6@ is statistically different from zero. At this point it would be appropriate to discuss whether you intend to use a fixed effects or a random effect model. In the interest is simplicity, we will use a fixed effects model but in your own research you would need to consider using either model.

A second issue that needs to be considered is if you plan to use a linear model as specified above or if you might use the natural logarithm of the fatality rate. Since we have no a priori reason to believe that the relationship between the fatality rate and the explanatory variables are linear, we will estimate both log-linear and a log-log models. In this way we can test if our policy conclusions are sensitive to the mathematical specification of our model.

Questions & Answers

What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
?
Kyle
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
Adin
why?
Adin
what school?
Kyle
biomolecules are e building blocks of every organics and inorganic materials.
Joe
anyone know any internet site where one can find nanotechnology papers?
Damian Reply
research.net
kanaga
sciencedirect big data base
Ernesto
Introduction about quantum dots in nanotechnology
Praveena Reply
what does nano mean?
Anassong Reply
nano basically means 10^(-9). nanometer is a unit to measure length.
Bharti
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Damian Reply
absolutely yes
Daniel
how to know photocatalytic properties of tio2 nanoparticles...what to do now
Akash Reply
it is a goid question and i want to know the answer as well
Maciej
characteristics of micro business
Abigail
for teaching engĺish at school how nano technology help us
Anassong
Do somebody tell me a best nano engineering book for beginners?
s. Reply
there is no specific books for beginners but there is book called principle of nanotechnology
NANO
what is fullerene does it is used to make bukky balls
Devang Reply
are you nano engineer ?
s.
fullerene is a bucky ball aka Carbon 60 molecule. It was name by the architect Fuller. He design the geodesic dome. it resembles a soccer ball.
Tarell
what is the actual application of fullerenes nowadays?
Damian
That is a great question Damian. best way to answer that question is to Google it. there are hundreds of applications for buck minister fullerenes, from medical to aerospace. you can also find plenty of research papers that will give you great detail on the potential applications of fullerenes.
Tarell
what is the Synthesis, properties,and applications of carbon nano chemistry
Abhijith Reply
Mostly, they use nano carbon for electronics and for materials to be strengthened.
Virgil
is Bucky paper clear?
CYNTHIA
carbon nanotubes has various application in fuel cells membrane, current research on cancer drug,and in electronics MEMS and NEMS etc
NANO
so some one know about replacing silicon atom with phosphorous in semiconductors device?
s. Reply
Yeah, it is a pain to say the least. You basically have to heat the substarte up to around 1000 degrees celcius then pass phosphene gas over top of it, which is explosive and toxic by the way, under very low pressure.
Harper
Do you know which machine is used to that process?
s.
how to fabricate graphene ink ?
SUYASH Reply
for screen printed electrodes ?
SUYASH
What is lattice structure?
s. Reply
of graphene you mean?
Ebrahim
or in general
Ebrahim
in general
s.
Graphene has a hexagonal structure
tahir
On having this app for quite a bit time, Haven't realised there's a chat room in it.
Cied
what is biological synthesis of nanoparticles
Sanket Reply
what's the easiest and fastest way to the synthesize AgNP?
Damian Reply
China
Cied
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
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Source:  OpenStax, Econometrics for honors students. OpenStax CNX. Jul 20, 2010 Download for free at http://cnx.org/content/col11208/1.2
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